Actually to save fees was why the use of crypto currency became popular. Now with the high number of transactions and the high cost of bitcoins has enabled the fees a bit out of control, specially in some altcoins like Ethereum. I agree with you that still sending a big amount of money is cheaper within the crypto space as compared to sending the same amount via PayPal.
We can also use crypto like Tron, XRP and even dogecoins to save a big amount of fees when transacting and unless the receiver has defined a particular coin, I would always consider saving fees and the person receiving can easily convert to the coin of their choice by any exchange.
People use PayPal because they aren't actually aware of bitcoins and some use PayPal because they can spend money directly from there since almost all the merchants accept PayPal but Bitcoin is yet to make a mark when it comes to acceptance among merchants.
Honestly nothing really changed for people who has worked with crypto, because we came here for bitcoin since it was super easy to send even cents from one nation to another nation all over the world, sure there could be some nations that already had it cheap but there was NO method that was super cheap to move money around, even cents, from one nation to nation without having too much charged.
Bitcoin was super cheap and it was super fast and you had to deal with nobody at all, which is why it was super awesome, and that is what I believed bitcoin would stay like and now it is not like that so I get it, however reality is that we are in a situation where even if bitcoin is no longer like that, even if eth is not like that we are still doing fine.
So, I think for crypto people absolutely nothing changed, bitcoin won't die for this reason since bitcoin is not just there for "cheap and fast transactions" and that is why it will not die neither.